An Analysis of Organizational Strategy’s Importance s1001190

Contents

Contents………………………………………………………………………………1
I. Introduction...................................................................................................................3

1.1 Organizational Strategy Theoretical Meaning.................................................................3

1.2 Organizational Design.....................................................................................................4

1.3 Monitoring Objectives of Organizational Strategy..........................................................4

II. Methodology................................................................................................................6

2.1 Hypothesis......................................................................................................................6

2.2 Discussions and Conclusions……………………………………………………………6

2.3 The Main Implications on Organizational Strategy……………………………………….6
2.3.1 Brand Assignment First, Company’s Assignment Second……………………….6

2.3.2 Brand Combination First, Business Portfolio Second…………………………….7

2.3.3 Brand Collaborative First, Business Collaborative Second……………………….7

III. Organizational Strategy Analysis Models Referring to Practices and

Culture………………………………………………………………………………..8
3.1 Organizational Strategy—Hierarchical Strategy……………………………………….8
3.2 Performance Content Analysis of the Pyramid Model………………………………...8
3.3 Organizational Strategy’s Influence on Culture………………………………………..8
3.3.1‘7S’ Strategic Model……………………………………………………………...8
3.3.2 Sustainable organizational Strategy and Enterprises’ Culture…………………...8
3.3.3 Growth-type organizational Strategy and Enterprises’ Culture………………….9
3.3.4 Retrenchment organizational Strategy and Enterprises’ Culture ………………..9
3.3.5 Competitive organizational Strategy and Enterprises’ Culture…………………..9

IV. Organizational Strategy’s Functions………………………………………….10

4.1 Organizational Strategy aiming for Operation is the Key to Success………………..10
4.2 Organizational Strategy can institute Competition Strategy…………………………10
4.3 Organizational Strategy helps to Analysis the Internal Resources…………………...11

V. The Influence on Enterprises’ Organizational Strategy………………………11

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5.1 The Influence on Products Structure………………………………………………….11

5.2 The Influence on Customers’ Preference and Requirement…………………………..11
5.3 The Influence on Industry Prospects and Profits……………………………………..12

VI. The Disadvantages of Organizational Strategy………………………………12

VII. Conclusion……………………………………………………………………..12
References…………………………………………………………………………………..13
Appendix A………………………………………………………………………………....16
Appendix B………………………………………………………………………………....22

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An Analysis of Organizational Strategy’s Importance

I. Introduction

This dissertation will focus on the correlation between organizational strategy and Human
Resource Management strategy on the level of company’s performance evaluation, meanwhile, it
will offer assumptions on differentiation strategy’s significance in organizational strategy’s
implementation, revealing implications and balancing advantages and disadvantages, emphasizing
a purpose to indicate organizational strategy’s influence on operation activities, regulations’
application including policies, culture and practices realization.
This essay will regard organizational strategy as a factor being subservient to business-level,
organizational-level and corporate-level strategies (Seyedjavadin et al., 2009), which may be good
for Human Resource policies’ and practices’ application. Arguably, organizational strategy will
focus on the linkage between corporate operation activities and Human Resource Strategies’
formulation. Organizational strategy is a comparatively complicated process in the Human
Resource Management. It is an issue that has been studied and discussed by scholars and critics.
The definition of organizational strategy and the relationships with other aspects of business plans
are difficult. Similarly, related standpoints in this notion are varied among different managers.
This dissertation will explain this definition from CIPD (Chartered Institute Personnel and
Development) perspectives and discuss its importance in Human Resource Management Strategy,
Polices and Practices, which means these enterprises will confront with three challenges, one is
promoting operation system, another one is satisfying interest-related groups’ needs and the last
one is adapting the pressure of globalization and internationalization. In order to obtain strategic
advantages in competitive markets, organizational strategy plays an essential role to affect
company operation systems’ formation and development in Human Resource Management
Strategy, policies and practices.

1.1 Organizational Strategy Theoretical Meaning

Organizational strategy may be a definition of how an organization faces with changes and
delivers available strategy and actionable plan to deal with innovation and reformation. This
requires defining its gap, comparing current state to desired state, and then executing capabilities
to make requisite changes be realized.
An effective organizational strategy may enable a company to transfer organizational
structure and deliver related principles to every department aimed to confront with fierce
competitions. Therefore, these purposive strategies maintain on strategic plans, market position
and investment. Take the following puzzle as an example (Silaer et al., 2010). The organizational
strategy of “Search at Google” is a special and particular case, whose organizational strategy will
prefer the cooperation work-forms rather than the independent framework. Since leaders and
related managers concern the value of enterprises’ collaboration and industries’ cooperation
chains, company and other relevant enterprises have focused on formal strategies of businesses’
operation and development. Theoretically, the implement of related organizational strategy

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focuses on the essential missions’ implementation, such as management operation, organizational

structure’ establishment and organizational culture promotion, which regarded as critical and
significant factors in Human Resource Management (Paris, 2008 on-line materials).
Organizational strategy may reflect an enterprise’s capabilities and core competitions. It
includes organizational modification, leadership development and globalization polices. Primarily,
it aims at establish and supervise organizational modification system. Meanwhile, it may
considerate market transitions and increase methodology’s transformation, combining with the
shift of strategies and markets, along with merger and purchase measures (Ferris, 2008).
Moreover, it includes leadership’s development, which means to design and offer personal
capabilities’ development. Equally, compensation and welfares policies’ establishment for
enterprises’ future destinies will be affected by organizational strategy. Besides these,
globalization and internationalization affect organizational strategy’s establishment, in the whole
competitive market, setting up global scale efficiency and a safe transnational position will be
essential to organizational strategy’s implementation (Silzer, 2010).
To sum up from professional analysis, the higher level of economic development, the more
strong need of organizational strategy might be required for an enterprise. Therefore, it is an
objective request for enterprises to complement organizational strategy. Due to national economics
confronted with globalization and internationalization, these enterprises have faced with ever-
increasingly intensive competition, requiring applying enterprises strategic management to
demonstrate its advantages which can grasp opportunities to improve enterprises’ core
competitions.

1.2 Organizational Design

Taking account to organizational design, organizational strategy aims to manage modification

and Human Resource Development, which can assist related organizations’ and systems’
improvement and promotion; as a result, it can enhance achievement, decrease costs and obtain
new values (Mishram, 2009 & Ramyah, 2009).There are several factors to think about the
organizational strategy:
1. The extended organizational structure. It includes what to be re-formulation in order to
reach to the extension strategic cooperation and the adherence of strategy.
2. The new technology and capability that will be required. It can affect Human Resource
Structure and the improvement of Human Resource Management.
3. The talent management operation activities need to be established at a high-quality
performance platform. In organizational strategy, it can do adjustment to relevant polices, motivate
and follow the related organizations’ configuration.
4. The operation of enterprises’ culture. In this aspect, organizational strategy can make
changes the possible requirements, realizing enterprises’ targets and final goals.
5. The performed results that will be needed, which means organizational strategy will be
connected to these targets.
6. The operation system combining with the integrated targets and the suitable activities,
ensuring the whole enterprise’s alignment.

1.3 Monitoring Objectives of Organizational Strategy

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Organizational assignment: it illustrates organizational strategy’s function, indicating

organizational products and customers, where it emphasizes a question that what the products used
for? Who will be its consumers? (Mishram, 2009 & CIPD)
Organizational concept: it focuses on employees’ codes of conduction, including employees’
moral standards and business behaviors, such as moral characteristics, ambitions and working
capabilities. It concerns on another question that how to improve their customers’ believes and
strengthen their ideologies, recognition on enterprise’s products and services (Lado, 2010 &
Armstrong, 2006).
Organizational vision: referring to this area, it concerns on organizational future development
and promotion direction and ambition. There is an issue to consider that how to support this
enterprise to be a world-class company.
Organizational target: it is a phase achievement before to reach its enterprise’s vision, taking
account to whether this enterprise can fulfill its sales turnover, and realize its commercial
performance.
Organizational strategy: it has set up a serial of basic principles and regulations, explaining a
question maintaining on how to explore and develop their products and expand their market into
transnational transaction and commercial trades, regarding products diversification, service-
oriented operation chains and customers-focused consumption standpoint as their business
features and principles, which will indicate the importance and significance of Human Resource
Management and the enterprise's sustainable development. In response to organizational strategy,
the purpose of organizational strategy is to make strategic targets, comprehend organizational
goals. Prioritizing work itineraries and behaviors, explicating enterprises strategies is also the
main contents. Meanwhile, organizational strategy can combine with enterprises’ daily works and
affairs, satisfying organization’s targets and evaluating management index, balancing both short-
term and long-term targets.
In the organizational strategy, there are several plans and programs to implement and enact to
realize enterprises’ final results, fulfilling its organizational managerial activities in a high
efficiency. Taking accounting to organizational strategy’s targets, there are several questions to
support its application and implementation. For example, how many employees in this
organization can reach the final goals? And how many expertise and professors will support plans’
enforcement? Similarly, to organizational strategy into practice, what kind of enterprise’s culture
and organizational atmosphere can adapt for this management program including its structure and
Human Resource Management Strategy? As a result, top managers and administrators will take
consideration of company’s recruitment methods and employees’ number, and the technologies
and skills which will be required for their assignment and principles. In addition, it will think
about company’s flow reservoir in their Human Resource Management and company employees’
turnover, combining their ages and working efficiency, which can enable companies to make out
right schemes, either expanding their sales market and profits values or penetrating their services
and products into their customers and potential markets. Furthermore, organizational strategy will
also focus on exploring new strategies and managerial approaches such as merger and alliance, in
which companies will absorb their mutual advantages and strengths in accommodating with
marketing trends and economic situation, improving its brand image and promoting its market
shares. Adversely, transnational cooperation contract will be also regarded as cultural training
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ingrained in both customers’ and employees’ consciousness, blending in company’s political and
cultural construction and integration, embedded in organizational strategy management plans and
designs (Patterson, 1997).

II. Methodology

2.1 Hypotheses (Ahmad et al., 2003)

Hypothesis 1: a differentiation strategy will be more market oriented than cost leadership
strategy.
Hypothesis 2: a differentiation strategy’s Market orientation will have a more positive
impact than cost leadership strategy. (Kumar, K. et al, 2002)
From Kumar’s perspectives(2002), a differentiation strategy is critical in organizational
strategy, and there are several methods to realize differentiation strategy: firstly, designing a brand
image, like Mercedes Benz having a significant prestige in automobiles industry; secondly,
technological characteristics, which is represented by Coleman's technical advantages in their
camping equipment industry; thirdly, exterior characteristics, represented by Jenn-Air's
characteristics in their electric field; furthermore, the distribution network, like Caterpillar
Tractor's example in their construction equipment industry. According to this analysis, enterprises
should implement differentiation strategy throughout their industry and whole operation
procedure. For example, Caterpiller Tractor Company is not only famous for its distribution
network and good at spare parts supply-services, but also is popular for its high-quality durable
products. Therefore, for those large equipment enterprises, this large equipment was vital. In
response to this concept, it will be expensive and cost a vast of money when these large
equipments operate in an improper approach, in which, it emphasizes that differentiation strategy
does not mean that enterprises ignore expenses, but the cost leadership strategy will not be
company primary strategic target.

2.2 Discussions and conclusion (Ahmad et al., 2003)

Differentiation strategy regarded to be a unique strategy, maintaining obvious differentiation

on enterprises' products, services, images and competitors. Referring to this branch of
organizational strategy, the main content is focused on a concept that regarding their industry and
customers as special products and services to support companies' uniqueness and differentiation
development. It explains organizational strategy is concerned on creativity and differentiation
polices which is deemed as unique products and services by their customers. Differentiation
strategy has various ways, such as product variation, service differentiation and image
differentiation. Realizing differentiation strategy, they may cultivate customers' consciousness on
brand loyalty aiming to obtain a higher standard than their average level referring to industry
profits and effective competition strategy (Kumar, K. et al, 2002).

2.3 The Main Implications on Organizational Strategy (see Appendix B-11, 1999)

2.3.1 Brand Assignment First, Company's Assignment Second.

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A core target of organizational strategy is aimed to ensure company's assignment. In fact,

customers concern on products brand, having a strong brand effect; therefore, brand assignment is
listed at the first place, while, company assignment will be at the second place. For example, P&G
Company has hundreds of brands, occupying an important position and reputation in customers'
inner-cent. From customers' perspective, brand effect may have a significant influence especially
for those long-term companies. In another word, customers understand a company through its
brand effect. As a result, if their products are without an attractive packaging and wrap, this
company might not attract their customers and expand their market. In order to support this
standpoint, Lenovo Company has introduced brand strategy for three years, setting up brand
manifesto as one of core assignments for a sustainable management organizational strategy (See
Appendix B-32).

2.3.2 Brand Combination First, Business Portfolio Second.

Organizational strategy has an important department—business portfolio management. The

basic management contents in this business portfolio management have been distributed in
different areas according to businesses' classification management. In response to this measure,
the purposes may focus on establishing relatively balanced business clusters based on cash flow,
growth and anti-risk factors. According to Lenovo Company's failure, it was mainly resulting from
its unsuccessful business portfolio management. Since Lenovo Company has a simple structure
and a single brand history, it cannot support new assignments in this ever-competitive IT market
(Lin et al., 2008). Therefore, it has changed its management regulation, absorbing new technology
and maintaining organizational strategy, setting up a proper business portfolio based on its brand
combination with a diversity services and various products, highlighting customer-oriented
market. This organizational strategy may not only explore abundant products, but also maintain its
competitive advantages and emphasize its business portfolio combining with business portfolio in
accommodating with strengthen its brand influence to attract their customers from a wide range.

2.3.3 Brand Collaborative First, Business Collaborative Second

It is an important regulation for enterprises' development. In terms of this concept, it is very

important to implement relation management pursuing synergy effect. Group companies will
pursue its subordinates among business units to achieve productivity, technology, procurement,
marketing and infrastructure; therefore, on business cooperation, business collaborative makes
group become a close relationship, which is not scattered correlation. For example, Overseas
Chinese Town Group (OCT) is a typical example, with diversified management including tourism,
real estate, home appliances, culture, and many other fields, OCT smartly use brand cooperation,
especially in the theme park and the real estate. This brand synergy of OCT property has made
important differentiation identification - 'tourism estate', which is a core competition, outweigh
other real estate companies (Business review, 2010, on-line materials see Appendix B-33).
However, OCT does not do well enough, OCT more embodied in a business brand, especially
theme park and real estate business brand, rather than a strong corporate brand. If it doesn't
improve the company's brand visibility in the future, the existing brand synergy will be weakened.
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III. Organizational Strategy Analysis Models Referring to Practices and Culture

3.1 Organizational Strategy—Hierarchical Strategy (Roni, 2002)

Referring to this strategy, there are several managerial organizational strategies worthy to
mention:
1. Dense Growth and Diversification Strategy: It divided market into four parts with four
strategy alternatives, including market penetration; market development, product development,
and diversification (see Appendix A-1).
2. Conformity Strategy: it means at the same industry, enterprise aims to expand business
operations and strategic programs, which contains different values and innovative stages.
3. Cooperation Strategy: it means to establish a partnership varying among different
enterprises, such as strategic alliances and mergers, which aim to absorb advantages and
capabilities mutually, disseminating resources distribution and sustainable development,
improving enterprises’ efficiency and performance.
4. Global and international Strategy: it means to establish target market penetrating into the
global and multi-countries, regarding the international market as the target market and productive
foundation.
5. Reforming Strategy: it will make function when enterprise faces with economic risks and
financial problems. Especially, in the internal operation environment, company will take strategies
for dramatically changes and adjustment.

3.2 Performance Content Analysis of the Pyramid Model (on-line materials see Appendix B-30 &
Appendix A - table 2)

In this analysis, company’s organizational strategy will be occupied by top managers, in

which, organizational strategy will establish related strategies and regulations to instruct
company’s managerial efficiency and increase their profits, from then on, it will deliver these
organizational strategy to different management department, enacting scientific organizational
strategy, laying enterprises foundation for future strategic objectives.
The pyramid model will emphasize organizational strategy’s importance and significance in
their performance indicators, reflecting performance targets and the win-win situation in their
cooperation. It reveals the strategic target and action plan with decomposition as a form of top-
down layers and establishing hierarchy system of auto-merging repetitive motion inquiries as a
bottom-up form. This auto-merging cycle progress indicates enterprises’ sustainable development
capability, contributing significant contribution to the correct evaluation of enterprises’
performance (see Appendix A-1).

3.3 Organizational Strategy’s Influence on Culture

3.3.1‘7S’ Strategic Model (Purchell, 1995 & See Appendix A-11)

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In 1981, American managers Richard Pascale and Anthony have offered out enterprise’s 7S
organizational thought—7S strategic model. In this standpoint, it means enterprises’ strategies,
enterprises’ culture and organizational structures has made up enterprises’ organization, in which
it includes the influence of strategy, structure, system, staff, style skill and shared version, it can
not only represent enterprises’ strategy and culture but also it can indicate the enterprises’
relationship in different levels.(Mckinsey, 1980s)

3.3.2 Sustainable organizational Strategy and Enterprises’ Culture.

Sustainable strategy means, in the internal environment restrictions, an enterprise will realize
enterprise’s resources distribution and maintain operation situation and business plans in a limited
period (Patterson, et al. 1997). In the whole commercial environment, sustainable strategy
enterprises will establish their business in a stable market, confronting with fewer challenges and
developing opportunities. Therefore, these enterprises will face with fewer challenges and more
chances to improve. However, sustainable strategy will reduce organizational strategy’s risk
ideology, sensitivity and suitability. Therefore, in a sustainable culture environment, these
companies will adapt a sustainable culture, pursuing success in a stable market.

3.3.3 Growth-type organizational Strategy and Enterprises’ Culture

Growth-type strategy could highlight to figure out new working methods and find out new
products in order to adapt for new markets, expanding enterprises’ market-shares and pursuing
new organizational strategies. The growth-type strategy arguably underlines competitive
advantages through expanding companies’ productivity and management methods, wide spreading
enterprises’ production scales and grasping developing opportunities. Therefore, in this
environment, the growth-type strategy will seek for a changeable and updated culture atmosphere,
to adapt for company’s creativity and new challenges. As a result, organizational strategy will be
established based on enterprises’ culture development and promotion; adversely, culture and
related policies’ enactment will restrict enterprises’ promotion style and operation methods.

3.3.4 Retrenchment organizational Strategy and Enterprises’ Culture

In this enterprise atmosphere, where after continental change and development, the original
advantage environment will become disadvantage and detrimental, the enterprises will shrink its
market-share and decline its financial flow and assert flexibility. In this way, these enterprises will
enact contract based on culture to suit for these enterprises’ development and promotion styles.
Meanwhile, it will establish related Human Resource Management polices and strategies to
administrate employees’ arrangement and realize resources’ sustainability development, in order to
reduce company’s losses and decline debility. In this situation, the company’s cultural atmosphere
will protect employees’ emotion and guarantee their rights, from which companies can receive
fewer risks and accept more opportunities to maintain business.

3.3.5 Competitive organizational Strategy and Enterprises’ Culture (see Appendix B: 31)

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There are three basic competitive strategies in related enterprises’ culture, for instance, the
cost-first strategy, the differentiation strategy, the target- focus strategy. These competitive
strategies will also affect enterprises’ culture, regarded as a critical factor for a success enterprise.
A basic organizational strategy will maintain enterprises’ culture and employees’ management. For
example, the Wal-Mart Company maintains employees’ training and couching, disseminating a
sense of responsibility and thrifty in the whole organization and enterprise, not only in terms to
managers but also in terms to employees, they will all concentrate on enterprise’s operation
situation and business management. Similarly, enterprise’s culture will be a competitive advantage
to ensure company’s development and promotion, in which only these two elements have
connected together, a company can realize their final targets and goals (Yeung et al., 1997).
To sum up, enterprises’ culture and organizational strategy will be a kind of dynamic balance
process, enterprises’ culture will not deviate organizational strategy. Referring to enterprises’
choices and strategy’s realization will also considerate culture factor and influence, they will
motivate and stimulate mutually. From this standpoint, organizational strategy will be the basic
evidence, throwing a light on culture establishment and practice. Enterprise future organizational
strategic choices will take a full consideration with current enterprise culture and also think about
the expected future enterprise culture in a mutual tolerance and promotive circumstances, which
can ensure implementation successfully.

IV. Organizational Strategy’s Functions

4.1 Organizational Strategy aiming for Operation is the Key to Success (Ramyah, 2009)

The enterprises either domestic or international, on behalf of establishing and complementing

the efficient organizational strategies, will obtain a quick development and gain a certain market-
share. To some extent, whether it formulates a right development organizational strategy will be
the standard to weighing the enterprises’ success, because without it, some companies may be
blind to follow market trends. For example, in terms of investment, when there is a booming in
real estate market or in stock market, there are a large number of investors joining in this market.
However, because of the main major competitors lacking of capitals and human resources, it
cannot keep advantages. Once the booming market becoming downslide, the capitals will be
entangled, as a result, these enterprises will face with difficult situations; in terms of
administration and regulations’ application, if the companies just obey the traditional trends,
regardless of its basis, it cannot go further. Therefore, the enterprises’ organizational strategy is
decisive for companies’ future developing aspects and activities.

4.2 Organizational Strategy can institute Competition Strategy

An analysis and establishment of organizational strategy can assist executives to understand

companies’ core competition and capabilities. Competition is various and unstable, ranging from
balance and unbalance, even in the monopoly market. Through organizational strategy’s functions,
managers can compare the related counter-partners’ core competition and advantages, therefore, it
might guide enterprises to design marketing modules, market possess rates and potential risks.
Organizational Strategy can used to analyze Operators’ Situations. The related organizational
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strategy can explain competitors’ capabilities of managing business and obtaining profits. For
example, through the compare, the organizational strategy can declare the similar and the different
characteristics in the same industry, which can make function on the guidance of the profits
standards, organizational structure, operational formwork, and the products exploration ability.
Furthermore, organizational strategy can motivate competitors’ to set up their competition
strategy. Because of an analysis of organizational strategy, it can help the joiners to make sense of
themselves’ strengthens and weaknesses, thinking about their competitive strategy to adapt fierce
competitions without being obsolete.

4.3 Organizational Strategy helps to Analysis the Internal Resources (Barney, 1991 & 1995)

Organizational strategy can illustrate enterprises’ existed and potential resources, integrating
its application methods and cooperation approaches to fulfill efficiency.
In terms of Human Resource perspective, enterprises’ organizational strategy’ complement
and operation will link to Human Resource Management plans and regulations. Since
organizational strategy’s realization and practices will be carried on for managers, employees and
operators, containing new ideas, qualities and skills, therefore, organizational strategy’s operation
enable to enhance Human Resource Strategies, inspiring employees’ enthusiasm.
Regarding to technological resources, it can be the strong support to organizational strategy.
It is organizational strategy that should be connected to technologies; since, it can ensure
enterprises’ operating process with high effectiveness and efficiency. Consequently, under the
assistance of technology, organizational strategy will disseminate a huge function to promote
productivities and realize goals.

V. The Influence on Enterprises’ Organizational Strategy (Wight et al., 1994)

5.1 The Influence on Products Structure

Organizational strategy’s establishment will affect products’ structure and conduct products’
structure formation. Organizational strategy’s application can analyze products structure, which
might be useful and meaningful for company resources’ distribution and reservation, leading to be
a core competence. Meanwhile, it can guide company to occupy a right position in the market
possibly, establishing products structure specially and exploring the development in new areas.
Theoretically, organizational strategy can embody products structure, strengthening consideration
and making evaluation and assessment to related services.

5.2 The Influence on Customers’ Preference and Requirement

Organizational strategy’s establishment might satisfy and distinguish the old and potential
customers’ requirement, and it could be used to think about the future market’s competition. In
response to this opinion, the organizational strategy can differentiate customers’ preference and
requirement, which is a necessary for a company to analyze customer groups and characteristics.
Indeed, organizational strategy analysis and marketing investigation could let executives
command customers’ information, through collecting, analyzing, feedback, transformation,
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calculating system, focusing on the different needs to various customers.

5.3 The Influence on Industry Prospects and Profits

Organizational strategy can be used to analyze industry’s prospects and profits, because it can
offer some suggestion to guide the competitive measures in order to promote their competence and
gain market shares. It is a fact that enterprise will not obtain a high profit due to the industry
limits, while organizational strategy’s establishment can be good for the thought about national
economic development, conducting companies to avoid risks.

VI. The Disadvantages of Organizational Strategy (Yeung, 1997)

However, organizational strategy still has some disadvantages. There are four key obstacles
to interrupting the organizational operation, such as, recognition obstacle, motivation obstacle,
resources obstacle, and policies obstacle. Especially, for an enterprise, establishing enterprises’
organizational strategy may not realize the potential customers and cannot understand their
customers completely. For example, why these customers will purchase these goods and whether
they really need these goods. The reasons to explain these problems have not abundant marketing
researches. Besides it, organizational strategy cannot predict future environment thoroughly, for
instance, what competitors will do and over-estimating the resources’ capabilities, and inflexible
organizational structure.
Referring to organizational strategy, there are several reasons to explain it. Primarily,
organizational strategy will be consistent to enterprises’ target; then, it will help the organization to
establish action plans and operational principles; finally, effectively organizing and distributing
resources. In another word, organizational strategy might help companies to apply plans and
resources distribution, in which it will enact some limitations to the whole progress, because
organizational strategy is established on a hypothesis, the accuracy and availability will be limited,
therefore, decision-makers and managers need to adjust to enterprises’ targets and goals, adapting
to organizational strategy’s dynamic property.

VII. Conclusion

In response to what have been discussed above, organizational strategy is a principle for
enterprises’ operation. It is not difficult to figure out that without the organizational strategy, there
are no clear regulations and rules to conduct a company’s market activities and business plans, this
company will be blind to implement management, which may just ensure to gain short-sighted
interests and limited existed space. Finally, organizational strategy will be essential for the
company’s development, which should be concerned by both enterprises’ owners and operators in
strategic management activities, emphasizing organizational strategy’s features and drawbacks,
and introducing differentiation strategy’s function in organizational strategy definition, illustrating
its significance on Human Resources Strategy, policies, culture and practices.

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[19] Kaplan, R.S., Norton, D.P. (1996) “Using the balanced Scorecard as a Strategic Management
System”. Harvard Business Review, January-February, 1996, pp. 75-85. (Available on-line
materials on Appendix B-5).
[20] Kumar, K., Subramanian, R., Strandholm, K. (2002) Market Orientation And Performance:
Does Organizational Strategy Matter? Journal of Applied Business Research, Vol. 18, No. 1.
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 An Analysis of Organizational Strategy’s Importance s1001190

[21] Lado, A.A., Wilsons, M.C. (1994) “Human Resource Systems and Sustained Competitive
Advantage: A Competency- Based Perspective”. Academy of Management Review, Vol.19 (4),
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[22] Marchington, M., Grugulis, I. (2000) Best practice human resource management: Perfect
opportunity or dangerous illusion? International Journal of Human Resource Management, Issue
11, pp. 905-925.
[23] Mckinsey (1980s) 7S Model. Available from: www.zs148.com/word/Mckinsey.pdf
[24] Mishram (2009) “HR’s Strategic Role in Organization Culture”. (Available on-line materials
on Appendix B-2).
[25] Mooray, S., Oyon, D., Hostettler, D. (1999) “The Balanced Scorecard: a Necessary Good or
an Unnecessary Evil?” European Management Journal, Vol. 17(5), pp. 481-491. (Available on-
line materials on Appendix B-8).
[26] Patterson, M.G., West, M.A., Lawthorm, R., Nickell,S. (1997) Impact of People Management
Practices On Business Performance. London: Institute of Personnel and Development. (Available
on-line materials on Appendix B-9).
[27] Purchell, J. (1995) “Corporate Strategy and its Link with Human Resource Management
Strategy”. In Story, J. (Ed). Human Resource Management: A Critical Text: London: Rout Ledge.
(Available on-line materials on Appendix B-10).
[28] Ramyah, T. (2009) HR Role Effectiveness and HR Contributions Effectiveness: Comparing
Evidence from HR and Line Managers. International Journal of Business and Management, Vol. 4,
No.2. (Available on-line materials on Appendix B-12).
[29] Roni, P., Beechie, T.J., Bilby, R.E., Leonetti, F.E., Pollock, M.M., Pess, G.R. (2002.) A
Review of Stream Restoration Techiniques and a Hierarchical Strategy for Prioritizing Restoration
in Pacific Northwest Watersheds. North A merican Journal of Fisheries Management, Issue 22,
pp.1-20.
[30] Schuler, R.S. (1992) “Strategic Human Resource Management: Linking the People with the
Strategic Needs of the Business”. Organizational Dynamics, Vol. 21(3), pp. 19-23.
[31] Seyedjavadin, S.R., Zadeh, M. H. (2009) HR Strategy and its aligning with organizational
strategy and human capabilities. Iranian Journal of Management Studies (IJMS), Vol. 2, No. 2,
June 2009, pp. 5-29.
[32] Silzer, R., Dowell, B.E. (2010) Strategy-Driven Talent Management, First Edition, 989
Market Street, San Francisco. (Available on-line materials on Appendix B-3).
[33] Strategic Human Resource Management: Aligning with the Mission (1999) U.S. Office of
Personnel Management, Office of Merit Systems Oversight and Effectiveness, September, 1999.
(Available on-line materials on Appendix B-11).
[34] “The end of global strategy” (Available on-line materials on Appendix B-6)
[35] The External Environment, Principle of Management, December 9th, 2010. (Available on-
line materials on Appendix B-25)
[36] Tsui, A.S., Gomez-Merjia, L.R. (1988) “Evaluating Human Resource Effectiveness.” In
Dyer,L., Holder, G.W. (Eds). Human Resource Management: Evolving Roles and Responsibilities.
Washington, D.C.: Bureau of National Affairs.
[37] Tyson, S., Guest, D., Purcell, J., Storey, J. (1997) Report to ESRC on the Link Between HRM
and Business Performance. Cranfield: School of Management.

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[38] Ulrich, D. (1997a) “Judge Me Moro by My Future than by My Past.” Human Resource
Management, Vol. 36(1), pp.5-8. (Available on-line materials on Appendix B-15).
[39] Ulrich, D. (1997b) Human Resource Champions: Tire Next Agenda for Adding Value and
Delivering Results. Boston: Harvard Business School Press. (Available on-line materials on
Appendix B-16).
[40] Ulrich, D. (1998) “ A New Mandate for Human Resource,” Harvard Business Review,
January-February, 1998, pp. 124-134. (Available on-line materials on Appendix B-17).
[41] Walker, J.W. (1999) “What Makes a Great Human Resource Strategy?” Human Resource
Planning, Vol.22(1), pp.11-13. (Available on-line materials on Appendix B-18).
[42] Wall, T.D., Wood, J.S. (2005) “The Romance of HRM AND Business Performance, and the
Case for Big Science.” (Available on-line materials on Appendix B-20).
[43] Wight, P.M., McMahan, G.C., McWillians, A. (1994) “Human Resource and Sustained
Competitive Advantage: a Resource-Based Perspective.” International Journal of Human Resource
Management, Vol.5(2), pp. 301-326. (Available on-line materials on Appendix B-19).
[44] Yeung, A.K., Berman,B. (1997) “Adding Value throught Human Resources: Reorienting
Human Resource Measurement to Drive Business Performance .” Human Resource Management,
Vol.36 (3), pp.321-335.
[45] Youndt, M.A., Snell, S.A., Lepak, D.P. (1996) “Human Resource Management,
Manufacturing Strategy, and Firm Performance.” Academy of Management Journal, Vol.39(4),
pp.836-866.

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Appendix A: Tables

1. Organizational Strategy—Hierarchical Strategy

Source: Hierarchical Level of Strategy

2. Performance Content Analysis of the Pyramid Model

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 An Analysis of Organizational Strategy’s Importance s1001190

Source: http://wiki.mbalib.com/w/images/1/17/%E4%B8%9A%E7%BB
%A9%E9%87%91%E5%AD%97%E5%A1%94%E6%A8%A1%E5%9E%8B.jpg

Source: http://www.regional.org.au/au/countrytowns/global/macgregor-1.gif

3. Organizational Strategy

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 An Analysis of Organizational Strategy’s Importance s1001190

Source: Iranian Journal of Management Studies (IJMS), June 2009, Vol. 2, No. 2, pp.5-29.
Aligning HR strategy with organizational strategy and human capabilities

4. Organizational Strategy Key Considerations

Source: Copyright(c) 2008.Charlesmore Partners International. All Rights Reserved.

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 An Analysis of Organizational Strategy’s Importance s1001190

5. Organizational Strategy Development

Source: http://www.leader-values.com/Content/detail.asp?ContentDetailID=1343

6. Culture Web

Source: http://www.mindtools.com/pages/article/newSTR_90.htm

7. Managing Strategy: Four Process

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 An Analysis of Organizational Strategy’s Importance s1001190

Source: dedeksoncenter.net/Classweb/.../OperationsMGT_hr8_ppt07.ppt

8. Around of Balanced: Scorecard

Source: Using the Balanced Scorecard as a Strategic Management System

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 An Analysis of Organizational Strategy’s Importance s1001190

9. The Linked Measures from the Four Perspectives

Source: Using the Balanced Scorecard as a Strategic Management System

10.

Source: A New Mandate of Human Resources

11. 7S Model
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 An Analysis of Organizational Strategy’s Importance s1001190

Source: http://www.12manage.com/images/picture_mckinsey_7s.jpg

12: Value Chain

Source: http://www.themanager.org/models/ValueChain-Dateien/image002.gif

13. Internal & External Environment Analysis

Source: Barrey, J. (1991) Firm Resources and Sustained Competitive Advantage. Journal of
Management, Vol.17, No. 1, pp.99-120.

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Appendix B: On-line Materials

1. http://www.leader-values.com/Content/detail.asp?ContentDetailID=1343
2. http://www.chrmglobal.com/Replies/2791/1/HR's-Strategic-Role-In-Organization-
Culture.html
3. http://books.google.com.hk/books?
id=dwRdbW1v_kcC&printsec=frontcover&dq=organizational+strategy+drives+
+HR+culture+and+practice&source=bl&ots=rNPA6ProYZ&sig=mGYYT28bh4BUjpEBb49b
XrMlIss&hl=zh-
CN&ei=ycfyTOzBDcGChQeAzJGmCw&sa=X&oi=book_result&ct=result&resnum=10&ve
d=0CEkQ6AEwCTgK#v=onepage&q&f=false
4. (1)http://www.cipd.co.uk/subjects/corpstrtgy/busiperfm/sustainable-organisation-
performance.htm (2) www.cipd.co.uk
5. (1)www.hrd.org
(2)http://maaw.info/ArticleSummaries/ArtSumKaplanNorton96.htm
6. http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6V9T-43GGYV2-
4&_user=10&_coverDate=08%2F31%2F2001&_rdoc=1&_fmt=high&_orig=search&_origin
=search&_sort=d&_docanchor=&view=c&_acct=C000050221&_version=1&_urlVersion=0
&_userid=10&md5=25754733138ef300b5b07e8bd51e0db7&searchtype=a
7. http://www.getcited.org/pub/103373357
8. http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6V9T-3XGFR0H-
5&_user=10&_coverDate=10%2F31%2F1999&_rdoc=1&_fmt=high&_orig=search&_origin
=search&_sort=d&_docanchor=&view=c&_rerunOrigin=google&_acct=C000050221&_versi
on=1&_urlVersion=0&_userid=10&md5=88d55211fa5bd0b5372125e29c2c579e&searchtype
=a
9. www.cipd.co.uk/nr/rdonlyres/.../0/impactofpeoplmgmntinbusperf.pdf

10. http://books.google.com.hk/books?
id=bc8OAAAAQAAJ&pg=PA63&lpg=PA63&dq=Corporate+Strategy+and+its+Link+with+
Human+Resource+Management+Strategy&source=bl&ots=t0MEPRWX2e&sig=AdOZz1cg
D7xL-6Hi4rrN11x-wgI&hl=zh-
CN&ei=CZsATcz3DcyFhQeV5KTuBw&sa=X&oi=book_result&ct=result&resnum=7&ved=
0CEYQ6AEwBg#v=onepage&q=Corporate%20Strategy%20and%20its%20Link%20with
%20Human%20Resource%20Management%20Strategy&f=false

11. www.opm.gov/studies/alignnet.pdf

12. www.ccsenet.org/journal/index.php/ijbm/article/view/533/514

13. esrccoi.group.shef.ac.uk/worddocs/humrels.doc
14. http://www.emeraldinsight.com/journals.htm?articleid=843763&show=html
15. http://hdl.handle.net/2027.42/34578
http://deepblue.lib.umich.edu/handle/2027.42/34578
16. http://www.highbeam.com/doc/1P3-27436416.html
17. http://books.google.com.hk/books?
id=vVaLd2x9njAC&printsec=frontcover&dq=A+New+Mandate+for+Human+Resources&so

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 An Analysis of Organizational Strategy’s Importance s1001190

urce=bl&ots=gaq4khCURh&sig=Wp6CQEhfN9IqC6O3qV9J_YhxD6g&hl=zh-
CN&ei=x6QATai6MNGYhQfk76ntBw&sa=X&oi=book_result&ct=result&resnum=2&ved=
0CCUQ6AEwAQ#v=onepage&q=A%20New%20Mandate%20for%20Human
%20Resources&f=false
18. http://www.allbusiness.com/public-administration/administration-human/261395-1.html
19. www.bus.tu.ac.th/usr/sab/Articles_pdf/.../RBV_Wright_web.pdf
20. (1) http://hum.sagepub.com/content/58/4/429.abstract
(2)http://hum.sagepub.com/search?fulltext=company
%20performance&sortspec=date&submit=Submit&andorexactfulltext=phrase&src=selected
&journal_set=sphum
21. http://en.wikipedia.org/wiki/Human_resource_management
22. http://books.google.com.hk/books?
id=D78K7QIdR3UC&printsec=frontcover&dq=handbook+of+huaman+resource+management+
practice&source=bl&ots=egQQPRW0jZ&sig=gP2YciKMLVH147QMSl2-e345ihQ&hl=zh-
CN&ei=38wATcO4KcXIhAfq5oztBw&sa=X&oi=book_result&ct=result&resnum=5&ved=0CD
MQ6AEwBA#v=onepage&q&f=false
23. http://www.informit.com/articles/article.aspx?p=438039&seqNum=2
24. http://wiki.mbalib.com/wiki/%E7%BB%84%E7%BB%87%E6%88%98%E7%95%A5
25. http://doc.mbalib.com/view/0c645fd1240d7e9d3236dea2c0968ca4.html
26. http://doc.mbalib.com/view/29798a1d9774e3e852cb67c7910aaee6.html
27. http://www.challengingbehavior.org/do/pyramid_model.htm
28. http://en.wikipedia.org/wiki/Wal-Mart
29. http://goliath.ecnext.com/coms2/gi_0198-390937/An-analysis-of-the-relationship.html
30. http://www.allbusiness.com/public-administration/administration-human/4498977-1.html
31. (1) http://www.cliffsnotes.com/study_guide/topicArticleId-8944,articleId-8859.html
(2) http://www.cliffsnotes.com/study_guide/The-External-Environment.topicArticleId-
8944,articleId-8859.html
32. http://ivythesis.typepad.com/term_paper_topics/2009/09/procter-and-gamble-organisation-
2005-strategic-business-analysis-review.html
33.
http://reports.innovaro.com/reports/overseas-chinese-town-asia-holdings-limited-swot-analysis-
company-profile (Business Review)

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